BETHESDA, Md. | LaSalle Hotel Properties (NYSE:LHO) today announced that it has priced a public offering of 10,000,000 common shares at a price of $14.75 per share. All of the shares are being offered by the Company.

Raymond James, Morgan Stanley, and Wachovia Securities are acting as joint book-running managers for the offering. Robert W. Baird & Co., Deutsche Bank Securities, and Stifel Nicolaus are acting as senior co-managers. BB&T Capital Markets, Janney Montgomery Scott and Oppenheimer & Co. are acting as co-managers. The underwriters have been granted a 30-day option to purchase up to 1,500,000 additional common shares to cover overallotments if any.

The Company intends to use the net proceeds of this offering, which are expected to be approximately $141.1 million (without giving effect to the exercise of the underwriters’ overallotment option), to reduce amounts outstanding under its senior unsecured credit facility and under the unsecured credit facility of the Company’s taxable REIT subsidiary, LaSalle Hotel Lessee, Inc., and for general corporate purposes. The Company may use these unsecured credit facilities in the future to repay other outstanding debt, to retire some or all of a series of outstanding preferred shares, to repurchase equity, to fund its development activity and property acquisitions, and for working capital and other general corporate purposes.

A copy of the prospectus supplement and prospectus relating to these securities may be obtained, when available, by contacting Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, FL 33716 or by calling toll-free at 1-800-248-8863; Morgan Stanley & Co. Incorporated, Attn: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014 or by email at [email protected]; or Wachovia Capital Markets, LLC, Attn: Equity Syndicate Dept., 375 Park Avenue, New York, NY 10152, at 1-800-326-5897 or email a request to [email protected].

This press release shall not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. The offering may be made only by means of a prospectus and related prospectus supplement.

LaSalle Hotel Properties is a leading multi-operator real estate investment trust owning 31 upscale full-service hotels, totaling approximately 8,500 guest rooms in 14 markets in 11 states and the District of Columbia. The Company focuses on owning, redeveloping and repositioning upscale full-service hotels located in urban, resort and convention markets. LaSalle Hotel Properties seeks to grow through strategic relationships with premier lodging companies, including Westin Hotels and Resorts, Sheraton Hotels & Resorts Worldwide, Inc., Hilton Hotels Corporation, Outrigger Lodging Services, Noble House Hotels & Resorts, Hyatt Hotels Corporation, Benchmark Hospitality, White Lodging Services Corporation, Gemstone Hotels & Resorts, LLC, Thompson Hotels, Sandcastle Resorts & Hotels, Davidson Hotel Company, Denihan Hospitality Group, Dolce Hotels and Resorts and the Kimpton Hotel & Restaurant Group, LLC.

This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe the Company’s future plans, strategies and expectations, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project" or similar expressions. Forward-looking statements in this press release include, among others, statements about the terms and size of the offering, the use of proceeds from the offering and the use of proceeds from the unsecured credit facilities referenced above. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond the Company’s control and which could materially affect actual results, performances or achievements. Factors that may cause actual results to differ materially from current expectations include, but are not limited to, (i) the availability and terms of financing and capital and the general volatility of securities markets, (ii) the Company’s dependence on third-party managers of its hotels, including its inability to implement strategic business decisions directly, (iii) risks associated with the hotel industry, including competition, increases in wages, potential unionization, energy costs and other operating costs, actual or threatened terrorist attacks, any type of flu or disease-related pandemic, downturns in general and local economic conditions, (iv) risks associated with the real estate industry, including environmental contamination and costs of complying with the Americans with Disabilities Act and similar laws, (v) interest rate increases, (vi) the possible failure of the Company to qualify as a REIT and the risk of changes in laws affecting REITs, (vii) the possibility of uninsured losses, and (viii) the risk factors discussed in the Company’s Annual Report on Form 10-K as updated in its Quarterly Reports. Accordingly, there is no assurance that the Company’s expectations will be realized. Except as otherwise required by the federal securities laws, the Company disclaims any obligation or undertaking to publicly release any updates or revisions to any forward-looking statement contained herein (or elsewhere) to reflect any change in the Company’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.